How to Solve for the MRTS: Five Examples

Five numerical examples are given to show how to solve for the marginal rate of technical substitution.

[@romualdchainey7549]

Can you please demonstrate step-by-step how you do the simplification?

[@summ4219]

He multiplies the number in front of the variable by its exponent. If the number is equal to 1 in front of the variable, we often do not write it down, which is why it looks like he is just copying and pasting the exponent to the front. After that, he deducts 1 from the exponent, which might lead to the exponent turning negative. That's how you calculate the derivative. When calculating the MRTS, you use partial derivatization, meaning you only derivate one variable and leave the other one like it is. Important to note is that if the other variable IS NOT connected via multiplication to the variable you are deriving, you cross it out. You do that for both variables, so you'll have two formulas. Another important thing is that if the first variable has a number in front but the second one does not and is connected via multiplication, when deriving the second variable, you calculate the exponent with the number in front of the first variable. I hope this makes sense; he explains it well at Minute 2:18. You then divide them as he does in the video. If I get anything wrong, I'd be happy if someone could correct me, but if I misspell, Don't be too harsh; my first language is German...

[@maxdamian9380]

My thoughts, literally don't get most of this

[@SureshKumar-mh2yn]

This video reminds me MRTS problem and how easily solve it. Thank you so much Sir 🙏😊.

[@SureshKumar-mh2yn]

Lot of Thanks Sir. Sir may you help me to telling something about quantity demand for money equation given by A.C. Pigou.

[@rakhiraj__123]

Please please upload more videos on different topics ☺️

[@知らん誰]

how would you interpret MRTS_LK=K/(2L)?

[@ГенаГоринов-с8й]

Thank you so much

[@EconomicsinManyLessons]

You are welcome!

[@Ausiedundan]

Aren't you missing the negative sign for your MRTS answers? As in I think MRTS = -- MPL / MPK

[@theosungminjeong6251]

the negatives cancel out mate

[@theosungminjeong6251]

when equal to -Px/Py

[@dibissaejeta4447]

(X1,x2) =min(x1,x2) find marginal rate of substitution

[@dbzey6980]

يا الله

[@dibissaejeta4447]

(X1,x2) =min(x1,x2) find marginal rate of substitution

[@romualdchainey7549]

Case of perfect complements. Mrs on the vertical axis= infinity and 0 on the horizontal axis